Waiver from bank

Seaniethomas

What is the likelihood a bank will grant a waiver to a single mother in her 40s of one teenage child who cant get mortgage protection ? Will the banks accept an existing life insurance doubled with a death in service . Anyone any experiance of this ?

L1011

Death in service isn't assignable so banks don't take it in lieu of mortgage protection. My death in service would clear my mortgage three times over but no dice.

Do you mean a waiver to LTI or deposit rules or a waiver to the need to have mortgage protection?

Seth Brundle

Ask the bank themselves to be sure but when myself & Mrs Brundle applied for a mortgage five years ago as we were moving up, I was unable to get life cover as I had a massive heart attack two months previously. I had a death in service policy through work and we had 18 or so years on the previous mortgage protection policy but they wanted cover for the full term of the new mortgage. Whilst Mrs Brundle was able to get life cover, nobody would touch me with a barge pole.
Anyhow, once my panic had stopped, I found out that all I needed was two refusals and a letter saying that I understand I'm not covered and stand to lose the house yada yada yada.

houseyhouse

Seth Brundle wrote: »

Ask the bank themselves to be sure but when myself & Mrs Brundle applied for a mortgage five years ago as we were moving up, I was unable to get life cover as I had a massive heart attack two months previously. I had a death in service policy through work and we had 18 or so years on the previous mortgage protection policy but they wanted cover for the full term of the new mortgage. Whilst Mrs Brundle was able to get life cover, nobody would touch me with a barge pole.
Anyhow, once my panic had stopped, I found out that all I needed was two refusals and a letter saying that I understand I'm not covered and stand to lose the house yada yada yada.

I'm surprised that you could do this. I know somebody who was denied mortgage protection by everyone recently (type 1 diabetes and the elevated risks due to Covid meant nobody would cover). Mortgage fell through.

phormium

Some banks are better at giving waivers than others, a broker might know who is the most lenient, UB used to be great for it but when they pulling out who knows!

Del2005

houseyhouse wrote: »

I'm surprised that you could do this. I know somebody who was denied mortgage protection by everyone recently (type 1 diabetes and the elevated risks due to Covid meant nobody would cover). Mortgage fell through.

Having a partner who could get cover most likely helped.

AverageDave

I would say approach a broker, they are best placed for advice.

Darc19

Assuming that you fulfill all other aspects required, then once you can show that you can't get it, you may be able to get a waiver.

A broker is the best route initially.

From citizens information

Exceptions to legal requirement

You do not have to take out mortgage protection insurance if:

You are aged over 50 or
The mortgage is not on your principal private residence (your home) or
You cannot get the insurance, or can only get it at a much higher premium than normal or
You already have enough life insurance to pay off the home loan if you die
However, some lenders may insist that you take out mortgage protection insurance as a condition of giving you a mortgage, even if there is no legal requirement in your case.

Seth Brundle

houseyhouse wrote: »

I'm surprised that you could do this.

As was I to be honest. Now the rules from the Central Bank may have changed in the interim which is why I say ask your mortgage advisor.

Seaniethomas

I cant understand how as a single person i cant just sign a contract with the bank that states the bank can take the house on my death.

Buddy Bubs

Seaniethomas wrote: »

I cant understand how as a single person i cant just sign a contract with the bank that states the bank can take the house on my death.

A court wouldn't turf your survivors out on the street if bank tried to repossess, so the bank wouldn't be able to take house anyway. That's main reason why. Family home sacrosanct in Ireland. An investment property can be mortgaged without insurance no problem

Seaniethomas

So can I change it and say im going to rent it out.

Seaniethomas

But even if i genuinley wanted to rent it out to make a profit, would mean my own rent would be a lot less .

Would I also need 30%

L1011

BTL mortgages are really not easy to get. Rental income is taxed and you cannot offset your own rent against it.

If you are just looking for a mortgage protection waiver, those are possible to get. Go to a mortgage broker. If you also meant an LTI or deposit waiver at the same time I would seriously doubt that would ever be given.

Seaniethomas

What is the chances of a bank granting a waiver after mortgage protection refused for a single father of a teenage daughter . Slim and none id imagine

L1011

For the third time - which type of waiver?

Seaniethomas

Lets just say im a first time buyer in his 40s with a 10% deposit who has been refused mortgage protection. Will the bank grant me a waiver for the mortgage as I cant get insured .

Seth Brundle

Seaniethomas wrote: »

What is the chances of a bank granting a waiver after mortgage protection refused for a single father of a teenage daughter . Slim and none id imagine

It was for a single mother in your first post

Seaniethomas

Seth Brundle wrote: »

It was for a single mother in your first post

Does it really matter ? Mother or father im asking a question. Answer should be same for either.

Seaniethomas

Seaniethomas wrote: »

Does it really matter ? Mother or father im asking a question. Answer should be same for either.

Anyway its not for me I am asking, its the buyer who is sale agreed on my house, the buyer has been refused mortgage protection apparently and is looking for a waiver off the bank after signing contracts.

Its a bit of a mess altoghter to be honest as I moved out of my house the day they were due to close, sold furniture and have everything in a lock up. Ive been living at my parents for 4 weeks and now looks like sale will fall through, second time this has happened to me in last 9 months, last buyers hadnt signed contracts and wanted money off and pulled when I refused.

Now im left losing my dream home im also sale agreed on and massive solicitors fees etc again, Sellers beware the law does not help you in anyway if a buyer cant close because of their naivety. It should be part of loan offer and before you sign contracts that you should get mortgage protection. Not fair on vendors left to pick up bills through no fault of there own. The whole process has been extremley stressfull on my family as we have been told different things the last 4 weeks, first we were told it was a funds issue with bank and only today was truth told. Very frustrating.

Toots

These are done on a case-by-case basis. The mortgage applicant needs to provide 3 letters of refusal to the bank to prove that they can't get life insurance/mortgage protection, and then the bank will assess whether or not they'll provide the waiver. They may agree to waive the life cover requirement, but only on a smaller mortgage amount.

I'm in a situation where I can't get life insurance due to various current and historical health issues, and I'm currently applying for a mortgage with my husband. He's the sole income earner and I'm at home with the kids. We've been told we'd have no problem getting a waiver for me because I'm not an income earner. From the bank's point of view, if I dropped dead in the morning, my husband's income would be more than enough to cover the mortgage, plus any childcare fees that would become necessary if I wasn't around to take care of the kids. If it was my husband that couldn't get cover then the mortgage would be a no-go because of the family home legislation - basically it would be nigh on impossible to repossess the property while our kids are still minors and living there. If it's a single parent I'm not sure what the chances are of them agreeing to it.

As another poster already mentioned, the death in service wouldn't cut the mustard. She could possibly assign the existing life insurance policy to the bank, but it would have to be for an amount greater than or equal to the mortgage amount. And the term remaining would also be an issue - the bank would most likely want it to last the duration of the mortgage.

How many times has she been refused life cover/mortgage protection? There are brokers out there who can arrange cover for high risk clients, although it very much depends on what exactly her health issue is. I've heard a lot of people are having problems getting insurance if they've had Covid because the long term effects are still unknown.

Seaniethomas

Ive no idea how many times shes been refused but for four weeks I was fobbed off saying it was a bank funds issue then waiting for GPs letter then eventually we were told she is apllying for a waiver.

mariaalice

How was the deposit paid and no mortgage protection in place? seems strange I know we couldn't draw down the mortgage without mortgage protection was in place and the solicitor did not release the deposit until we had full mortgage approval in full and we did not sign until we had mortgage approval.

I would be checking out that story with the buyer very carefully or else her solicitor was negligent.

Seaniethomas

mariaalice wrote: »

How was the deposit paid and no mortgage protection in place? seems strange I know we couldn't draw down the mortgage without mortgage protection was in place and the solicitor did not release the deposit until we had full mortgage approval in full and we did not sign until we had mortgage approval.

I would be checking out that story with the buyer very carefully or else her solicitor was negligent.

My solicitor has deposit but she is entitled to it back as it was subject to loan offer, I am no up ****s creek without a paddle if the buyer dosent get the waiver, which I imagine she wont.